IvanLabrie
Long

Dollar adjusted Gold: Foreign investors' gold perception

This chart shows the price of gold             , adjusted by the dollar, which shows us how foreign investors' currencies fare against gold             . So far, it's clear we have an uptrend, in the long term, but right now, we could be in the presence of a lengthy sideways consolidation. Most traders expect a massive rally, and a crash in equities . I think none of the two will happen, and we'll see a grindy, sideways price action in the shiny metal. Still, since the dollar is regaining strength, it's likely to see gold             and the dollar outperform all other currencies .

We can monitor progress of this chart, to have an idea of the extent of gold's strength, and wether we are better off holding either USD or Gold             , as a hedge against our local currencies (like in my case, since I live in Argentina, I need to hedge against horrific inflation).
The advance here is capped, by the horizontal resistance level at the 129268.30 mark on chart, but there's a new quarterly time at mode signal on chart, which implies a 38.71% rally from current levels by or before Q3 2019.
To turn bearish on gold             vs foreign currencies , we'd need to see it drop under the blue box on chart, and stall here for one more quarter.

Good luck,

Ivan Labrie.
If you're interested in joining my trading newsletter or private lessons, message me. I trade Forex, Equities and Commodities. Contact: skype @ ivanlabrie, PM here or QQ (2954487803).
albertwt
a month ago
Hi Ivan,
Thank for posting this idea of XAUUSD and DXY, is there any difference between VIX as well ?
https://www.tradingview.com/chart/VIX/
+1 Reply
IvanLabrie TOP albertwt
a month ago
What do you mean?

VIX, is implied volatility of options, an indicator we often use to help understand the activity in the S&P500.

It can be extremely useful but not directly related to gold, at least not in the light of this post's angle.

There's an observable phenomenon in silver and VIX, Tim West has a publication explaining it. I'll add the link here.
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